ABLEGROUP BERHAD’s Q2 2025 Report: A Strong Return to Profitability
ABLEGROUP BERHAD has just released its financial results for the second quarter ended June 30, 2025, and the numbers paint a picture of a significant turnaround. After a period of losses, the company has swung back into the black, driven by impressive revenue growth and new income streams. This report is a must-read for investors tracking the building materials sector, as it highlights a potential shift in the company’s trajectory.
In this analysis, we’ll break down the key figures, explore the performance of its business segments, and look at what the future might hold for the company. Let’s dive in.
A Strong Financial Turnaround: Q2 2025 Performance
The headline story for ABLEGROUP is the stark contrast between this quarter and the same period last year. The company successfully converted a loss into a profit, signaling a positive shift in its operational efficiency and market position.
Q2 2025 (Current Quarter)
- Revenue: RM 860,000
- Profit Before Tax: RM 58,000
- Profit After Tax: RM 30,000
- Earnings Per Share (EPS): 0.011 sen
Q2 2024 (Comparative Quarter)
- Revenue: RM 674,000
- Loss Before Tax: (RM 124,000)
- Loss After Tax: (RM 124,000)
- Loss Per Share (LPS): (0.047 sen)
Revenue surged by a notable 28% year-on-year, primarily fueled by a significant increase in retail sales and steady progress on supply and installation contracts. A key factor in the return to profitability was the introduction of RM 120,000 in rental income during the quarter, providing a new and stable revenue stream.
Half-Year Performance: A Steady Picture
Looking at the first six months of 2025, the positive trend continues. The Group’s revenue saw a slight 2% increase to RM 1.794 million compared to the first half of 2024. More importantly, the company recorded a profit after tax of RM 54,000 for the period, reversing the RM 78,000 loss from the previous year.
Segment Performance: Building Materials Lead the Way
The Building Material segment remains the core of ABLEGROUP’s operations, serving as the primary revenue generator and a significant contributor to profits. The Property Development segment also added to the bottom line, while the Investment Holding segment recorded a loss.
| Business Segment (1H 2025) | Revenue (RM’000) | Profit/(Loss) After Tax (RM’000) |
|---|---|---|
| Building Material | 1,794 | 232 |
| Property Development | – | 119 |
| Investment Holding | – | (297) |
A Healthy Financial Position
ABLEGROUP’s balance sheet appears solid and stable. As of June 30, 2025, the company’s net assets per share stood at RM 0.17. With total equity of RM 43.62 million against total liabilities of just RM 1.76 million, the company maintains a very low gearing ratio. Furthermore, the positive net cash flow from operating activities of RM 353,000 for the first half of the year underscores the health of its core business operations.
Navigating the Future: Risks and Opportunities
Looking ahead, ABLEGROUP is focused on growth while navigating potential market challenges. The company’s prospects are tied to its ability to secure new projects and manage the inherent risks in the construction and property sectors.
The company recently secured a new contract worth RM 0.101 million for stoneworks, bringing its outstanding order book to RM 0.681 million. The management has stated it remains proactive in seeking new contract works to sustain operations and enhance financial performance.
While the outlook is “cautiously optimistic,” investors should consider potential risks such as dependency on the cyclical nature of the construction industry and competition within the building materials market. The company’s ability to consistently replenish its order book will be crucial for sustained growth.
Summary and Investment Recommendations
This section provides a summary and outlook based on the financial report. It is intended for informational purposes only and should not be construed as financial advice to buy or sell any securities. Investors should conduct their own due diligence.
ABLEGROUP BERHAD’s Q2 2025 results mark a commendable return to profitability. The 28% year-on-year revenue growth, combined with a new stream of rental income, has fundamentally improved its bottom line. The company’s strong balance sheet, low debt, and positive operating cash flow provide a stable foundation. The key challenge ahead will be to build on this momentum by securing new projects to grow its order book.
Key points for investors to monitor going forward:
- Order Book Replenishment: The ability to secure new contracts beyond the current RM 0.681 million order book is vital for future revenue visibility.
- Margin Sustainability: With rising operational costs as a general economic concern, maintaining healthy profit margins in the competitive building materials segment will be critical.
- Revenue Diversification: The impact of the new rental income is already clear. Further diversification could provide more stability against the cyclical nature of contract-based work.
Overall, this was a strong quarter for ABLEGROUP, showing resilience and a strategic move towards profitability. The focus now shifts to whether this performance can be sustained in the coming quarters.
What are your thoughts on ABLEGROUP’s turnaround? Do you believe the new rental income provides a stable foundation for future growth? Share your insights in the comments below!
